Gross domestic product figure set to overtake the British mainland

By Mike Goodman

THIS year the Isle of Man's gross domestic product per head is likely to overtake the British mainland as it smashes through the £1bn barrier

By mainland standards that amount of money is small change. But, shared among the island's 75,000 inhabitants, it means their income will be ahead of Britain's.

Stephen Carse, Isle of Man Treasury economic adviser, says: "One of the core objectives of the Isle of Man Government's policy has been to raise the country's per capita national income to above that of the United Kingdom.

"In 1985 per capita GDP was 57pc of that of mainland Britain. By 1998-99 it was 93pc.

"But after two years, during which real GDP has risen 20pc, the latest figures indicate GDP per head will be higher than that of the mainland during the first quarter of this year."

The island is one of the British Isles but has enjoyed a measure of self-government for centuries, not least being given the right to fix its own tax rates.

Much of the island's present boom stems from its success as a financial centre, a reputable low tax haven for international investors.

But financial services do not dominate the economy as they do in many other territories, although they still make up about 45pc of the economy.

"But there is also shipping, the film industry and spin-offs from financial services such as telecommunications, web design and internet service providers."

The island's "new businesses" provide not only new but well-paid jobs. This adds to the average income per head but not necessarily the median, as there are still many lower-paid jobs in tourism and fishing, for example.